Michel Barnier: Brexit negotiations have hit 'disturbing' deadlock

15/10/2017

Mrs May said Britain would ensure the other 27 countries did not lose out financially from Brexit in the current European Union budget period to 2020 and would honour commitments - but Mr Barnier said London was failing to spell out just what it was ready to pay. They all rule out a clear move to trade talks but many expect "positive language" to try to defuse British accusations of Brussels intransigence and to help May stand up to her own party critics.

He said "we're looking for some urgency from our friends and partners. We look forward to moving on to being able to talk about that".

The pound tumbled nearly a full cent against the dollar after the comments, hitting the day's lows of $1.3122, down from $1.3212 beforehand.

"A future relationship may come up at the December council but that's no reason not to talk about a bridging arrangement first". That could see tariffs imposed on imports and exports between the two sides as well as regulatory complications for doing business. Two different verdicts on the Brexit negotiations were given in Brussels today as the latest round of talks ended.

With concern mounting about the possibility they might run out of time for any deal, Davis renewed his call for European Union leaders to give a green light to trade talks after they meet Prime Minister Theresa May at a summit in Brussels next Thursday.

Stood alongside the UK's Brexit Secretary David Davis, Barnier said that Theresa May's Florence Speech had given "momentum to these negotiations" but that there was a "disturbing" deadlock over the size of the bill the United Kingdom pays to the EU. "I hope the leaders of the 27 will provide Michel with the means to explore ways forward with us on that".

Barnier told reporters in Brussels on Thursday that on the issue of the financial settlement, there have "been no negotiations".

Mr Barnier was given a mandate by the 27 heads of state and government to helm the Brexit talks on their behalf but it restricts him from discussing the future relationship until the European Union judges that "sufficient progress" has been made on the issues of the so-called Brexit bill, citizens' rights and Ireland.

The leaders meet in Brussels on October 19-20, and it had been hoped they would widen the talks.

He also called for Northern Ireland to be given designated special status in the EU.

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